USAID/Lebanon Industry Value Chain Development (LIVCD) Project - Q4 Report, 2013

The project will expand the number of Micro and Small and Medium Enterprises (MSMEs) that can compete in selected markets, improve linkages between those firms and other actors throughout the value chain, increase the gross value of products and services in local and export markets, and expand exports. The net effect of these activities will contribute to improved economic stability and food security for Lebanon, especially in rural areas, and decrease migration from rural to urban areas. The project partners with local private sector companies to work in eight selected value chains that have the potential to compete in regional and international markets. The selected value chains include Floriculture, Grapes, Olive Oil, Pome Fruits, Processed Foods, Rural Basket including honey, Rural Tourism, and Stone Fruits. The project aims to achieve several results by the end of the project in September 2017, including the establishment of at least seven fully functioning, competitive value chains, an increase of at least 700 businesses or micro-enterprises benefiting from horizontal and vertical linkages, and an annual increase of at least 10 percent in the volume and value of exported agricultural products of selected value chains for each value chain. During the fourth quarter of 2013, the project finalized the work plan based on the selected value chains' upgrading strategies from the assessment, held numerous stakeholder meetings, and completed discussions with USAID to set the priorities for the next 12 months through September 2014. The project began implementing priority value chain activities in order to increase exports, displace imports, access new markets, improve the quality and quantity of products, and generate additional revenue for beneficiaries. In particular, the project completed value chain activities under grants, co-investments, and PPPs targeting Lebanese communities impacted by the Syrian crisis. The project also designed the work plan to balance fast impact activities with activities that achieve impact in the future. The former type of activity will result in a rapid increase in revenues through improved production practices and new technologies, while the latter type of activity will achieve significant results in the future, such as the introduction of new varieties. The project also emphasized interventions with the potential for scaling up and replicating initiatives to leverage additional funds from the private sector. In addition, specific tasks were included for enhancing Science, Technology, and Innovation Partnerships (STIP) projects, such as introducing innovative field management practices to farmers and working on patented planting materials with farmers and seedling producers. The project coordinated with other USAID projects, in particular Baladi, which shares areas of complementarity and might work with common municipalities. The project also coordinated with the LIM project on access to finance to discuss agriculture lending. The project plans to facilitate lending and support feasibility studies, in coordination with LIM's efforts. For rural tourism, the Work Plan articulated the goal of increasing the number of tourists visiting rural areas and improving the quality of tourism services. The project's work plan reflects a balance between activities with short-term and immediate results, such as improving production practices and new technologies, and activities with long-term impact, such as interventions on products' varieties and competitiveness. The project also designed the work plan to emphasize reaching out to farmers that own smaller plots, in particular in host communities for Syrian refugees. The project understands that while the project remains end-market oriented aimed at improving competitiveness within the value chains, its objectives must be reconciled with USAID's Feed the Future development objectives.